FE Final Notes

Gearing is the ratio of debt used to finance a company's assets relative to equity, indicating financial leverage.

Durable Goods:

• Definition: Products lasting over three years.

• Examples: Appliances, furniture, cars, electronics, and tools.

• Characteristics: Higher cost, infrequent purchases, long-lasting, may require maintenance.

Non-Durable Goods:

• Definition: Products consumed quickly, usually within a year.

• Examples: Food, beverages, clothing, cleaning products, toiletries.

• Characteristics: Lower cost, frequent purchases, quickly used or worn out, no maintenance needed.

In summary, durable goods are long-lasting, while non-durable goods are short-lived.